Trial Balance and Rectification of Errors Test 23

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Trial Balance and Rectification of Errors Test 23

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Question 1
1 / -0

It is irrelevant to check below mentioned to trace the error in trial balance:

A
Check the total of debit and credit column

B
Totals of subsidiary books

C
No mistakes in the balancing of various accounts

D
None of the above

Solution

Trial balance have two sides i.e. debit and credit. As accounting is based on dual aspect concept, both the sides must show the equal total. Some of the errors can be disclosed from the trial balance and some are not disclosed from the trial balance.
To find out the errors in trial balance,it is irrelevant to check the below mentioned points:
1) Checking of debit and credit columns
2) Total of subsidiary books
3) No mistakes in the balancing of various accounts.
Question 2
1 / -0

Office was renovated and renovation charges were 5000. They were put in purchase book account. It is ___________.

A
error of complete omission

B
error of principle

C
error of commission

D
all of the above

Solution

If fundamental accounting rules are not followed while doing the accounting, there is an error of principle. For example, capital expenditure are debited as revenue expenditure.
Office renovation cost have to capitalized and not to be debited to purchase account. This is an error of principle. This has to be rectified by passing the below entry:

Office renovation Dr. 5000
To Purchases A/c 5000
Question 3
1 / -0

One sided errors are:

A
Errors affecting purchase account only

B
Errors affecting only accounts

C
Errors affecting any one account

D
Errors affecting only balance sheet

Solution

Accounting errors can be classified as:
1) Error of principle
2) Error of omission
3) Error of commission
4) Compensating error

These errors further can be classified as single sided error and double sided error. Error which are affecting one side of the transaction will affect the trial balance. When an error affect two accounts,it is said to be called double sided error.
Question 4
1 / -0

An accountant forgot to enter a sales entry in the subsidiary register the impact will be _________.

A
trial balance will not be affected

B
trial balance will be affected

C
debit side of the trial balance will be enhanced

D
credit side of the trial balance will be enhanced

Solution

Recording of sales transaction in subsidiary books is an example of complete omission. Its an error of omission. Since both the sides are not recorded, hence trial balance will not be affected.
Question 5
1 / -0

Which of the following errors are revealed by the trial balance?

A
Errors in balancing account

B
Errors of principle

C
Errors of complete omission

D
Compensatory Errors.

Solution

Error in balancing an account is an error of commission. In such situation, trial balance will not be tallied. Hence these kind of errors can be revealed by the trial balance.
Question 6
1 / -0

It is a check on the accuracy of posting. If the trial balance agrees it proves that -
1. The books are arithmetically accurate
2. Both the aspects of the transactions have correctly recorded in the books of original entry as well as in the ledger.
The correct answer is ___________________.

A
$$1$$ but not $$2$$

B
$$2$$ but not $$1$$

C
Both $$1$$ & $$2$$

D
Either $$1$$ or $$2$$

Solution

The trial balance is prepared to fulfill the following objectives :
1. To ascertain the arithmetical accuracy of the ledger accounts.
2. To help in locating errors.
3. To help in the preparation of the financial statements. (Profit & Loss account
and Balance Sheet).
Question 7
1 / -0

Which of the following best describes a trial balance?

A
It is a list of balances on the books

B
Shows the financial position of a business

C
Shows all the entries in the books

D
It is a special account

Solution

The best description of a trial balance is a statement that shows all the entries in the books. A trial balance is a statement that contains all the balances of real, nominal, and personal accounts.
Question 8
1 / -0

A _______ is a schedule or list of balances of both debit and credit extracted from various accounts.

A
Profit & Loss Account

B
Balance Sheet

C
Cash Flow Statement

D
Trial Balance

Solution

A Trial balance is a schedule or list of balances of both debit and credit extracted from various accounts. It is basically a worksheet showing debit and credit balances of all ledger accounts and the total of both should be same thereby ensuring the arithmetical accuracy of books of accounts.
Question 9
1 / -0

Which of the following statements is correct about trial balance?

A
A Trial balance is a list of all entries made in the books of account

B
A Trial balance is a list of balances in all assets accounts

C
A Trial balance is another ledger account

D
A Trial balance is a list of balances in the cash account and all ledger accounts.

Solution

Trial balance is prepared to check and confirm the posting of all accounting entries. Trial balance is prepared with the help of ledger account. All the balances from each of ledger account is taken in a list in the debit and credit column. Both the sides of trial balance must be equal as accounting is based on the double entry system of accounting.
Question 10
1 / -0

In case the accountant is unable to differentiate between capital expenditure and revenue expenditure it is type of error ________.

A
Accounting error

B
Errors of principle

C
Errors of omission

D
Errors of commission

Solution

When a transaction is passed in the books of account by not following the fundamental rule of accounting, it is an error of principle. Like capital expenditure are debited to revenue expenditure. For example, purchase of machinery debited to purchase account.

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Trial Balance and Rectification of Errors Test 23

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Trial Balance and Rectification of Errors Test 23

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SHARING IS CARING

Question 1

Check the total of debit and credit column

Totals of subsidiary books

No mistakes in the balancing of various accounts

None of the above

Solution

Question 2

error of complete omission

error of principle

error of commission

all of the above

Solution

Question 3

Errors affecting purchase account only

Errors affecting only accounts

Errors affecting any one account

Errors affecting only balance sheet

Solution

Question 4

trial balance will not be affected

trial balance will be affected

debit side of the trial balance will be enhanced

credit side of the trial balance will be enhanced

Solution

Question 5

Errors in balancing account

Errors of principle

Errors of complete omission

Compensatory Errors.

Solution

Question 6

$$1$$ but not $$2$$

$$2$$ but not $$1$$

Both $$1$$ & $$2$$

Either $$1$$ or $$2$$

Solution

Question 7

It is a list of balances on the books

Shows the financial position of a business

Shows all the entries in the books

It is a special account

Solution

Question 8

Profit & Loss Account

Balance Sheet

Cash Flow Statement

Trial Balance

Solution

Question 9

A Trial balance is a list of all entries made in the books of account

A Trial balance is a list of balances in all assets accounts

A Trial balance is another ledger account

A Trial balance is a list of balances in the cash account and all ledger accounts.

Solution

Question 10

Accounting error

Errors of principle

Errors of omission

Errors of commission

Solution

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